Today’s RealTrending features team leaders Michael Scanlon and Jake Fugeman Axon Group with eXp Realty And based in Chicago. After investing in real estate, the duo decided to start a real estate business working with investors.
They have expanded their niche to all buyers and sellers, but are still thriving with smaller investors. Here’s who they did it for.
Here’s a small preview of today’s interview with Mike. The transcript below has been lightly edited for length and clarity.
Tracy Welt: You were both investors, so you worked with investors to build this niche. Tell us a little bit about the types of investors you work with.
Jake Fugeman: Most of our investors are what we would consider entry-level or mid-level.Many of them seem to come from people following the FIRE movement rather than recent trends.FIRE and stands for “financial independence, early retirement.”
Many of these buyers seek a consultative approach when they are just starting out. Most of them are people looking to do what is called “house hacking”, i.e. he buys 3 units, of which he lives in 1 unit, and the rest of his 2 for rent.
Tracy Welt: Michael, what is the real difference between working with investors and working with owner-occupiers? It’s a combination. Please tell me a little bit about how they are different.
Michael Scanlon: Some investors don’t care what a property looks like, but there are still investors who, much like homebuyers, want an attractive product. Is required.
They want their property to still be attractive, but they also need to consider cash-on-cash returns. need to find out. There is a lot of mathematics involved. I am doing some pretty advanced calculations. Not only simple cash-on-cash, but also internal rate of return, etc. are calculated. Make sure they understand what the tax benefits are by purchasing this property.
We are trying to have the best possible setup in the long run. This includes many aspects of maximizing liquidity with our favorite 1% little trick. Just make sure you have their multi-year goals in mind. “Hey, listen, I’m hoping for a promotion next year or this year. With a low down payment loan, I can make the most of next year.”
RealTrending features the brightest minds in real estate. Twice a month, he shares success tips, trends, and lessons learned from navigating this ever-changing industry with brokerage leaders, top agents, team leaders, and industry experts. . Hosted by Tracey Velt and produced by Elissa Branch.